By Angela McDaniels
Seattle, Jan. 19 - The Bear Stearns Cos. Inc. priced a $1 million issue of reverse convertible notes due July 23, 2007 linked to the common stock of Halliburton Co., according to a 424B5 filing with the Securities and Exchange Commission.
The six-month notes will pay a single payment of 5.85% at maturity for an annualized rate of 11.7%.
The payout at maturity will be par unless Halliburton stock hits the contingent protection level of $23.25 during the life of the notes and finishes below the initial share level of $29.06, in which case the payout will be 34.41156 shares of Halliburton stock or, at Bear Stearns' option, the cash value thereof.
Bear Stearns said it may grant a $150,000 greenshoe to agent Bear, Stearns & Co. Inc.
| Issuer: | The Bear Stearns Cos. Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Halliburton Co.
|
| Amount: | $1 million
|
| Greenshoe: | $150,000
|
| Maturity: | July 23, 2007
|
| Coupon: | 11.7%
|
| Price: | Par
|
| Payout at maturity: | Par if Halliburton stock remains above the contingent protection level during the life of the notes or finishes above the initial share level; otherwise, 34.41156 Halliburton shares
|
| Contingent protection level: | $23.25, 80% of initial share level
|
| Initial share level: | $29.06
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 22
|
| Agent: | Bear, Stearns & Co. Inc.
|
| Agent fees: | 1.01%
|
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